The Association of Master Bakers and Caterers of Nigeria (AMBCON) has sounded the alarm over the escalating expenses related to baking materials in Nigeria. This issue has grown increasingly worrisome for the industry.
Several members of the Association voiced their concerns during separate interviews with the News Agency of Nigeria (NAN) in Abuja. Ms. Peace Izeduwa, the Manager of Nextar Bakery located in Kubwa FCT, expressed apprehension about the repercussions of rising prices for essential baking ingredients like flour, sugar, yeast, and more.
Izeduwa emphasized that the mounting costs of production might lead to the closure of numerous bakeries. She appealed for government intervention to address this challenge and safeguard the industry’s stability.
She disclosed that a recent 15 percent increase in bread prices was attributed to the elevated cost of production, which had already impacted businesses in the FCT. This increase was a result of the removal of fuel subsidies and the unification of the foreign exchange window, which in turn affected transportation, goods, and services.
Izeduwa provided specific examples of price hikes, stating, “Before now, the price of Mix and Bake Flour was N29,500, but has increased to N33,750, while the same applies to other raw materials. It is not easy for bakery owners to increase prices of products the way the manufacturers increase the price of raw materials.”
She expressed bakers’ dissatisfaction with the rapid and substantial price increases that have occurred in recent months, especially considering the 15 percent rise in raw material costs that led to the previous bread price increase.
AMBCON had previously announced a 15 percent hike in bread prices on July 24 due to the economic challenges faced by bakers, as confirmed by Mr. Mansur Umar and Mr. Jude Okafor, the National President and National Secretary of AMBCON respectively.
Ishaq Abdulrahman, Chairman of FCT Master Bakers, encouraged bakers to remain steadfast and persistent despite the difficulties. He urged the government to prioritize the sector’s well-being, given its significant role as a major employer.
Mr. Uche Ubani, a baker, highlighted that as of August 13, the landing price of Prime Flour was N38,500, with additional distributor costs. He pleaded for government assistance to ensure the industry’s continued survival, citing a potential bag price in FCT ranging from N39,000 to N40,000.